Harmonic Inc (HLIT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.89 | 3.52 | 2.56 | 3.48 | 5.25 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 3.42 | 10.42 | 24.39 | 5.14 | 4.17 |
Harmonic Inc's inventory turnover ratio has shown a declining trend over the years, decreasing from 5.25 in 2020 to 2.56 in 2022 before slightly recovering to 3.52 by 2023 and further improving to 4.89 in 2024. This indicates that the company is taking longer to sell its inventory, which may suggest issues related to demand or inventory management efficiency.
The company's receivables turnover ratio data is not available, making it difficult to evaluate how efficiently Harmonic Inc is collecting its accounts receivables.
Similarly, the payables turnover ratio data is also unavailable, making it impossible to assess the efficiency of the company's payments to suppliers.
The working capital turnover ratio has exhibited significant fluctuations, with a sharp increase from 4.17 in 2020 to a high of 24.39 in 2022, suggesting a more efficient use of working capital. However, it decreased to 10.42 in 2023 and further dropped to 3.42 in 2024, indicating a potential decrease in sales relative to the working capital employed.
In conclusion, while there are some fluctuations in Harmonic Inc's activity ratios, more detailed information on receivables and payables turnovers would provide a more comprehensive analysis of the company's operational efficiency and financial health.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 74.68 | 103.78 | 142.83 | 105.03 | 69.55 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Harmonic Inc's activity ratios indicate the efficiency of its inventory management and collection of receivables.
1. Days of Inventory on Hand (DOH):
- The company's DOH has shown fluctuations over the past five years, ranging from a low of 69.55 days in 2020 to a high of 142.83 days in 2022.
- A lower DOH is generally considered better as it signifies faster inventory turnover. Harmonic Inc's DOH decreased significantly from 2022 to 2024, indicating a more efficient management of inventory levels.
2. Days of Sales Outstanding (DSO):
- The DSO data is not available for any of the years provided. This could suggest that either the company does not extend credit to customers, or the data might be missing or undisclosed.
3. Number of Days of Payables:
- Similar to DSO, the Number of Days of Payables information is not provided for any of the years, making it challenging to assess the company's payables management efficiency.
In conclusion, Harmonic Inc seems to have made improvements in managing its inventory levels efficiently based on the decreasing trend in Days of Inventory on Hand. However, the absence of data for Days of Sales Outstanding and Number of Days of Payables limits a comprehensive analysis of the company's overall activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 9.57 | 6.88 | 8.78 |
| Total asset turnover | 0.85 | 0.79 | 0.88 | 0.73 | 0.64 |
The fixed asset turnover ratio of Harmonic Inc has shown fluctuations over the years. In 2020, the ratio was 8.78, indicating that the company generated $8.78 in sales for every dollar invested in fixed assets. However, this ratio declined in the following year to 6.88 before rebounding to 9.57 in 2022. The absence of data for 2023 and 2024 makes it challenging to assess the trend accurately.
On the other hand, the total asset turnover ratio, which measures how efficiently a company utilizes its total assets to generate revenue, also exhibited variability. In 2020, the ratio was 0.64, implying that the company generated $0.64 in sales for every dollar of total assets. The ratio then improved to 0.73 in 2021, further increasing to 0.88 in 2022. However, there was a slight decline in 2023 to 0.79 before recovering to 0.85 by the end of 2024.
Overall, despite fluctuations, the fixed asset turnover ratio shows that Harmonic Inc has been efficient in utilizing its fixed assets to generate sales, with a potentially positive trend. Similarly, the total asset turnover ratio suggests that the company has been effectively leveraging its total assets to drive revenue, with a general trend of improvement over the years. However, the absence of data for 2023 and 2024 hinders a comprehensive assessment of long-term activity ratios for those years.